Goodnow Investment Group LLC Takes $67.58 Million Position in Credit Acceptance Corporation $CACC

Goodnow Investment Group LLC purchased a new position in shares of Credit Acceptance Corporation (NASDAQ:CACC) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 106,131 shares of the credit services provider’s stock, valued at approximately $67,578,000. Credit Acceptance accounts for about 7.0% of Goodnow Investment Group LLC’s portfolio, making the stock its 3rd largest position. Goodnow Investment Group LLC owned approximately 1.01% of Credit Acceptance as of its most recent filing with the SEC.

Several other large investors have also made changes to their positions in CACC. BlackRock Inc. bought a new position in Credit Acceptance in the second quarter valued at approximately $408,849,000. Boston Partners raised its position in Credit Acceptance by 3.4% during the fourth quarter. Boston Partners now owns 456,253 shares of the credit services provider’s stock valued at $202,373,000 after purchasing an additional 14,877 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in Credit Acceptance by 3.1% during the first quarter. Dimensional Fund Advisors LP now owns 230,715 shares of the credit services provider’s stock worth $97,701,000 after purchasing an additional 6,843 shares during the last quarter. Smead Capital Management Inc. lifted its stake in Credit Acceptance by 17.0% during the second quarter. Smead Capital Management Inc. now owns 216,811 shares of the credit services provider’s stock worth $110,450,000 after purchasing an additional 31,438 shares during the last quarter. Finally, Smith Thomas W acquired a new stake in shares of Credit Acceptance in the 4th quarter valued at $42,083,000. Institutional investors and hedge funds own 81.71% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on CACC shares. Zacks Research lowered Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 13th. Weiss Ratings upgraded Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 16th. Finally, TD Cowen raised their price objective on Credit Acceptance from $575.00 to $600.00 and gave the company a “hold” rating in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $570.00.

Insider Activity at Credit Acceptance

In other Credit Acceptance news, CFO Jay D. Martin sold 3,000 shares of the company’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $601.04, for a total value of $1,803,120.00. Following the completion of the transaction, the chief financial officer owned 25,963 shares of the company’s stock, valued at $15,604,801.52. This represents a 10.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Erin J. Kerber sold 5,720 shares of the stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $629.80, for a total value of $3,602,456.00. Following the completion of the transaction, the insider owned 25,711 shares of the company’s stock, valued at $16,192,787.80. This represents a 18.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 44,289 shares of company stock worth $27,525,241 over the last 90 days. 6.10% of the stock is currently owned by company insiders.

Credit Acceptance Price Performance

CACC stock opened at $603.07 on Tuesday. The stock has a market cap of $6.31 billion, a price-to-earnings ratio of 13.26 and a beta of 1.37. The company has a debt-to-equity ratio of 3.84, a current ratio of 14.89 and a quick ratio of 14.89. The company has a 50 day simple moving average of $600.52 and a 200 day simple moving average of $536.75. Credit Acceptance Corporation has a 1 year low of $401.90 and a 1 year high of $668.86.

Credit Acceptance (NASDAQ:CACC) last issued its earnings results on Tuesday, August 4th. The credit services provider reported $12.12 earnings per share for the quarter, missing analysts’ consensus estimates of $12.20 by ($0.08). The company had revenue of $415.00 million during the quarter, compared to analyst estimates of $588.07 million. Credit Acceptance had a net margin of 21.54% and a return on equity of 31.67%. The business’s quarterly revenue was up .6% on a year-over-year basis. During the same quarter in the prior year, the business earned $10.05 EPS. Research analysts anticipate that Credit Acceptance Corporation will post 47.8 EPS for the current fiscal year.

Credit Acceptance Company Profile

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.